Navigating PF Deductions: How to Handle Part-Time and Ad Hoc Employee Queries During Inspection

Dear Sir/Madam,

I have received the letter regarding the PF inspection in our school and have some queries related to this.

Eligibility for PF Deduction for Part-Time Workers

1. There are some employees who were working as part-time workers, and we do not mention them in our attendance register. Please tell me, are they eligible for PF deduction?

PF Deduction for Ad Hoc Employees

2. There is one employee working on an ad hoc basis, which means she is not a regular employee, and we do not pay her salary for the month of June. However, she is on our regular attendance register. Is she eligible for PF deduction?

PF Challans for Contractor-Provided Security Guards

3. There was a contractor who provided us with two guards for security services (now removed), but we did not receive any PF challan receipt from him during his service. His firm name is St. John Security & Services, so we used to deduct 2% TDS on that. Do we need a copy of PF challans from him?

Please advise on how to handle the PF inspection effectively to ensure a positive outcome.

Ensuring Compliance with Contractor Employees

To ensure compliance regarding contractor employees is the responsibility of the principal employer. You can contact the security contractor and ask them to supply and produce relevant records in original at the time of inspection as fixed by EPFO authorities. In case you do not produce the required records and fail to demonstrate compliance, the department will assess the contribution due based on the amounts your unit has paid to the said contractor firm and claim the same from the principal employer, i.e., your establishment.

Importance of Maintaining Attendance Records

Adding the names of all employees in the Attendance/Muster-roll of the establishment, though required by labor laws, is essential. If not maintained, EPFO authorities will note down the total amounts paid to such individuals as wages and claim contributions on those wages. Whether any of the individuals engaged by your unit were truly part-time or not coverable under the EPF & MPs Act, 1952, will be determined by the EPFO authorities based on the facts and records you present to them.